Meme Stocks and Their Variability
Meme stocks tend to be quite speculative, often generating a lot of buzz on social media. GameStop kicked off the meme stock phenomenon, experiencing a dramatic surge in 2021. However, it’s worth noting that this leading meme stock has dropped over 30% this year, with numerous price fluctuations along the way. It’s interesting how quickly the fate of these stocks can shift, as illustrated by GameStop’s history and, more recently, the ups and downs of Beyond Meat. Just earlier this year, BYND saw its stock price shoot up from $0.50 to over $7 in just a week due to a massive short squeeze, but it’s now fallen to around $1.
While some meme stocks have indeed plunged following brief surges, there are others that seem more stable, or at least based on some fundamentals. Analysts consistently highlight certain meme stocks that could appeal to investors looking to outperform the market. For instance, three meme stocks have drawn bullish opinions from experts, who see potential for growth by 2026.
One noteworthy example is Rivian Automotive, a volatile stock in the electric vehicle sector. This year hasn’t been too bad for them; their price is up over 10%. Ivan Feinseth, from Tigress Financial Partners, is optimistic about the company’s future. He suggests that Rivian’s investments in AI could contribute to revenue growth and bolster its market valuation.
“The advancements in software, AI, and driver-assistance technology could enhance safety and lead to future opportunities for upgrades,” he mentioned, raising his price target to $25 per share. While self-driving cars present formidable long-term possibilities, they’re still in early development. Currently, Alphabet’s Waymo seems to have the upper hand, with its vehicles successfully navigating highways. Rivian, meanwhile, has started to implement some hands-off driving features and is working on enhancing its self-driving technologies.
Krispy Kreme’s stock has faced a tough year, plummeting over 50% from its 2025 peak. Yet, according to analysts like Sara Senatore from Bank of America, there’s still a “buy” rating for DNUT stock. “With its solid sales and earnings growth, we think Krispy Kreme deserves to trade at a higher valuation that matches its growth trajectory,” he stated in a note to investors.
Mr. Senatore also highlighted Krispy Kreme’s strategy to expand from 3,750 to 8,000 U.S. and Canadian locations in the coming years, and their recent financial results hinted at recovery. Organic sales grew 0.6% year-over-year, while international sales rose by 7.3%, and the net loss has lessened.
Not all meme stocks burn out, though. Take Carvana, for instance; their stock is up more than 60% this year, and analyst Chris Pearce believes it has further upward potential. He notes that Carvana’s significant investments in real estate and proprietary technology have created a robust competitive edge, setting a price target of $500 on CVNA stock.
The economic indicators for Carvana reflect that particular meme-like enthusiasm. Their third-quarter revenue shot up 55% compared to the previous year, almost doubling their net income. Impressively, for the first time, they exceeded a $20 billion revenue run rate and sold about 156,000 rental units, marking a 44% year-over-year increase.
